Chapter 3.10
ADDITIONAL REAL ESTATE EXCISE TAX FOR AFFORDABLE HOUSING
Sections:
3.10.060 Taxpayer’s obligations.
3.10.010 Purpose.
The purpose of the additional one-half of one percent real estate excise tax on the sale of real property, imposed pursuant to RCW 82.46.075, is to aid in the development of affordable housing in San Juan County. Development of affordable housing shall include acquisition, building, rehabilitation, and maintenance of housing for very low, low and moderate income persons or households and those with special needs. (Ord. 11-2018 § 1)
3.10.020 Definitions.
These words when used in this chapter have the following definitions:
“Affordable housing” means that occupants are spending no more than 30 percent of their gross household income on housing costs. Housing costs for renters are considered to include rent and utilities, or, for owners, to include the principal and interest on the mortgage plus property taxes and insurance (PITA). Utility costs include water, sewage disposal, electricity and/or gas for lighting, heating and cooking.
“Affordable housing excise tax” means the tax authorized by the voters of San Juan County, pursuant to the enablement and requirements of Chapter 82.46 RCW, as now enacted, or subsequently amended, and which is:
A. Levied on each sale of real property in the County beginning 30 days after approval of the tax by the voters is certified by the County auditor.
B. At a rate of one-half of one percent of the selling price to be paid 99 percent by the purchaser and one percent by the seller.
C. For a period of 12 years after the initiation of the tax as set out in this definition and expiring 12 years after the date of imposition. (Ord. 11-2018 § 2)
3.10.030 Imposition and rate.
A. Thirty days after the approval by a majority of the voters of San Juan County of the affordable housing excise tax is certified by the County auditor, there shall be levied and collected by the treasurer an excise tax on each sale of real property in San Juan County at the rate of one-half of one percent of the selling price. Taxes imposed under this chapter shall be imposed in the same manner and on the same occurrences and are subject to the same conditions as the taxes imposed under Chapter 82.45 RCW.
B. Taxes imposed under this chapter shall be paid 99 percent by the purchaser and one percent by the seller of the property. (Ord. 11-2018 § 3)
3.10.040 Use of proceeds.
A. The County treasurer shall place the proceeds of the affordable housing excise tax in the affordable housing fund. All tax revenues shall be administered by the County as part of the affordable housing fund and spent in accordance with RCW 82.46.075, the 2018 Real Estate Excise Tax Administrative and Financial Plan passed by Resolution 25-2018 and this chapter.
B. Disbursements of the RCW 82.46.075 tax funds in the affordable housing fund shall be made following a competitive grant and loan process. The County council has approved an administrative and financial plan by Resolution 25-2018, which includes criteria by which the applications shall be approved and funded. (Ord. 11-2018 § 4)
3.10.050 Liens.
Any tax imposed under this chapter and any interest and penalties thereon are a specific lien upon each piece of real property sold from the time of the sale until the tax is paid, which lien may be enforced in the manner prescribed for the foreclosure of mortgages. (Ord. 11-2018 § 5)
3.10.060 Taxpayer’s obligations.
The taxes levied in this chapter are an obligation on the purchaser (99 percent) and the seller (one percent). The tax obligations of the seller and purchaser may be enforced through an action of debt against the seller or in the manner prescribed for the foreclosure of mortgages. Resort to one course of enforcement is not an election not to pursue the other. (Ord. 11-2018 § 6)
3.10.070 Expenditure plan.
Grants and loans pursuant to RCW 82.46.075 shall comply with the 2018 Housing Real Estate Excise Tax Administrative and Financial Plan adopted by the County council. (Ord. 11-2018 § 7)